AAFA Calls on President Biden to Restart Labor Negotiations for East Coast, Gulf Coast Ports
The American Apparel and Footwear Association called on President Joe Biden to help restart labor contract negotiations between the International Longshoremen’s Association and the United States Maritime Alliance, in a letter dated March 12. The labor contract covering East Coast and Gulf Coast ports expires at the end of September, and the negotiations have been stalled since March 2023, the AAFA said.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The contract covers 45,000 dockworkers for 36 ports from Texas to Maine, the association said. In 2023, the East/Gulf Coast ports accounted for 53% of all U.S. apparel, footwear and accessories imports, amounting to over $92 billion in value, the AAFA said. A strike would increase the price of goods, hurt the reliability of East Coast ports, and spark "a new round" of inflation, the association said.
The AAFA said its members are already seeing "unforeseen transportation challenges," including the Red Sea attacks (see 2312200045) and lower water levels at the Panama Canal (see 2401180050). In addition to port disruptions raising the price of goods, it would also hurt the partnership the U.S. has with Central America for trade, the AAFA said.
"A disruption is preventable with immediate engagement from the Biden Administration," the association said, adding that helping engage the two parties and restarting negotiations could help the Biden administration to continue to build a legacy of "leadership on labor rights and transportation."
The White House, USMX and the ILA didn't respond to our requests for comment.